Top Down V Bottom Up Planning at Amey: Martin Nicholds, HR Director – Talent, Resourcing and Learning

Amey – touching the lives of 1 in 4 people in the UK everyday

Amey’s Clients

Amey’s workforce today 14,000 Amey 2% Grads Apprentices 82 different country origins Age 17 to 81 37% baby boom, 47% Gen X, 16% Gen Y 85% white 70% male, 30% female 20% Part-Time 450 job titles 600 locations 79% perm, 21% temp

Existing Challenges in our Industry Youth unemployment at a record high Find jobs for around 6000 engineers each year Make engineering & technology field more attractive to females = increase in numbers Retain these people within the market sector and not lose them to other industries To work together – public & private sectors with the education providers – School, FE Colleges and Universities to attract, develop and retain the engineers of the future So the challenge for large parts of our industry is this Find jobs for around 6000 engineers each year Make engineering & technology field more attractive to females = increase in numbers Retain these people within the market sector Negative trends impacts will be hidden for a few years When the demand increases the result may be a skills deficit To work together – public & private sectors with the education providers – School, FE Colleges and Universities to attract, develop and retain the engineers of the future

UK Young Talent - external influences University applications 8% BRIC economies Ageing UK population – 33% 50 plus by 2020 Engineers retiring much faster than new engineers qualifying UK Govt plans Double apprentices Compact on social mobility No statutory retirement age 21% UK youth unemployment (16-24) % 20 10 Number of people doing engineering and technical based degrees has been increasing but not fast enough to replace retirees 200,000 new engineering jobs likely to emerge over next 5 years in UK More engineers retiring than entering the industry (Royal Academy of Engineering Feb 2010) 30% Overseas students, who mainly leave UK 30% take jobs in other industries e.g. Finance and retail Impact of rising student fees - £9K pa University applications down 15% Polarisation between academic and vocational skills Long term youth unemployment Emerging economies – competition from BRIC countries Aging UK population – 1/3 of UK labour force will be aged 50 or over by 2020 Our desire to work with our clients to support the youth issue 05 06 07 08 09 10 11

Young Talent and it’s importance to Amey Ageing workforce needs rebalancing Significant growth agenda 18,000 16,000 14,000 Total workforce 12,000 Higher engagement, lower attrition Source of innovation 10,000 2008 2011 2013

An integrated approach - Young People Pipeline Duke of Edinburgh Business Scheme – Gold Award Professional Accreditation Academic Qualifications School Students STEMNET Trainees Typically 18 with few GCSEs or NEETS Apprentices Typically 18+ with 3-5 GCSEs Technicians Typically 5 GCSEs, weak A level grades or do not want University route Undergrad Students [Sponsored, Internships & Industrial Placements] Graduates Talent Tracker At Amey we are seeking to take a holistic look mat our approach to ‘young people’ and have a range of interventions and activities at all sections of the Pipeline

Questions a management team should be asking: What’s my resource mix and manpower costs? Perm, temps, subcontractors? Do I have the right skill sets to achieve next years targets? Who are flight risks? What can I do to retain and develop? Do I have enough good people coming through to replace those who are leaving?

Sources of data to inform a view Financial data Costs by unit Recruitment campaign costs Labour costs Org charts Monthly Headcount report Direct and overhead Headcount by band Starters/leavers Rolling attrition Grads/apprentices Community days Grievance/disciplinary Absence Vacancies PDR Data 9 box grid SAP